Why Selling your Business is Better than Shutting it Down?

Quite often, owners of businesses especially those on the verge of failure, chicken out and decide to cease their operations without considerable thought of other prospects that may be better or profitable to all involved in the business. If you are unable to clearly visualize an alternate path out of the situation, it makes sense to engage someone who can do it for you. There is a fair chance that you undervalue or underestimate your business, assets, and its prospects with respect to your niche market and future flow of income. Your reason to terminate your business may arise from a number of factors. It stands well within reason to know when to give up if you are unable to take the stress of running a business anymore owing to age or health or even running out of resources in terms of finance, skilled human capital, and similar other elements. After realizing that you need to move on, the next crucial decision is your exit planning. How would you like to exit your business – by completely shutting it down or selling it to a deserving buyer? Following are a few reasons why you should always consider listing your company for sale over ditching it completely.

Get value for your business

You may be running an unproductive business, but do not forget the other aspects of your business; existing human capital, operational equipment, customer base, business vendors, and other stakeholders that you painstakingly invested in along the journey. These are all assets both quantifiable and unquantifiable that can be refocused to generate income. So it is important to conduct careful research and valuate your business under the existing conditions but with a focus on future prospects and earn that value from a profitable sale.

The business may continue without affecting its stakeholders

It may seem very harsh to shut down a company, you and your stakeholders toiled so hard to build over the course of many years. Conversely, selling the business means better chances of survival for the company and its stakeholders without affecting their livelihood and customer base. You also stand the opportunity to gain some profit by listing your business for selling. So everyone benefits without letting all the assets go in vain.

The option of transferring ownership without exiting your business

There are many investors and buyers exploring the market to make investments in potential businesses with respect to future cash flow. Quite often, you will find buyers who like to take up the challenge of turning around a drowning business with their investments and business acumen, but prefer the previous owners running it as their employee, owing to their existing knowledge about the respective domain. So, if you have set up your company for sale but are contemplating the further source of income, you can very well stay back as an employee and work with the benefit of not carrying the huge responsibility of running the business on your shoulders alone, and also not worry about the financial aspect and earn a steady source of income in the bargain. This is a win-win situation for all, provided the buyer and the seller agree to the said arrangement.

The new owner may potentially re-work the business model to drive growth

While selling your business you are presented with a situation where you can take the calculated risk of selling your business as per your clauses to a buyer who fits your bill. You know the nitty-gritty of your business well and hence, are in a position to choose your buyer who shows potential to revive your company productivity. In the event that you have sold your business successfully to a competent buyer and you see the positive results of your decision in terms of a flourishing business from where you handed it over, it’s a great feeling to experience the positive acknowledgment of your decision to sell over shutting it down. Clearly, it is better in the majority of the cases to profitably sell your business to a resourceful buyer or even a competitor and let them reap the benefits of your business than completely abandoning it. That way, all parties benefit from the deal and you will find it more productive and satisfying for yourself and the business, over just surrendering and resigning the fate of all your employees, vendors, investors, and clients to the same. Business owners in a similar dilemma of selling the company vs. shutting it down may want to evaluate the situation to make the right decision in consultation with an expert business consultant. For business owners who want to leverage expert business consultation or want to sell their company, you can easily sell your business online at Simplified Marketplace. We would be happy to extend our expertise to help you arrive at the best decision under your current circumstances. Our expert team of consultants is just a click away at


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